Netanyahu Announces $34 Billion Gas Deal With Egypt, Israel’s Largest Ever

Prime Minister Benjamin Netanyahu announced Wednesday that Israel has signed a landmark natural gas agreement with Egypt, marking the largest deal in the country’s history.

The agreement, valued at 112 billion shekels ($34+ billion), is expected to bring substantial revenue to Israel, with 58 billion shekels projected to flow directly into state coffers. Israel will receive 500 million shekels ($155 million) during the first four years, while annual revenue is expected to reach roughly 6 billion shekels ($1.86 billion) in later years.

The deal includes significant investment in infrastructure, such as expanding pipeline capacity, and is anticipated to encourage additional exploration in Israel’s exclusive economic waters. Netanyahu said the revenue will strengthen sectors including education, healthcare, industry, defense, and the economy for future generations.

Signed with U.S. energy giant Chevron, Netanyahu approved the agreement after ensuring Israel’s security and strategic interests. He said the pact bolsters Israel’s position as a regional energy power and contributes to broader Middle East stability.

Netanyahu acknowledged domestic opposition to gas development in earlier years, noting that critics had warned it could harm Israel’s economy. He said the nation’s gas production has instead brought major profits and helped elevate Israel’s ranking among the world’s economies.

Energy Minister Eli Cohen described the deal as a historic moment for Israel both strategically and economically. Cohen emphasized that the agreement prioritizes the domestic market and ensures that the Leviathan gas field will supply any gas required locally before exports. Infrastructure investments linked to the deal are set at 16 billion shekels ($5 billion), and mechanisms are in place to maintain competitive gas prices within Israel.

The agreement also sets a framework beginning in 2032 that allows the Petroleum Commissioner to reduce export volumes to prioritize domestic demand.

The announcement clears the way for a trilateral summit between Netanyahu, U.S. President Donald Trump, and Egyptian President Abdel Fattah el-Sisi at Trump’s Mar‑a‑Lago estate, with Egyptian approval of the gas deal a prerequisite for Sisi’s participation.

While Netanyahu stressed that Israel’s security and vital interests were safeguarded in the deal, specific security commitments from Egypt remain unclear. It is not yet known whether Egypt pledged to address weapons smuggling into Gaza or other security concerns, including compliance with provisions of the 1979 peace treaty regarding movement of forces and infrastructure in the Sinai.

The deal also aligns with U.S. strategic and economic interests, benefiting American energy giant Chevron and supporting regional stability while strengthening Israel-Egypt ties.